Medicare Locals could face the axe in the upcoming budget

Updated
April 22, 2014 07:28:00

It's looking increasingly likely Medicare Locals will face the axe in the upcoming budget. The local health bodies were set up under the Rudd government to organise community-specific health programs. A number of Medicare Local CEOs have been told that the Government is planning to shut them down.

CHRIS ULHMANN: Medicare Locals look likely to face the axe in the May Budget.

The bodies were set up under the Rudd government to run community-designed health care programs. Now the ABC has learned a number of Medicare Local chief executives have been told the Government plans to shut them down.

And as medical reporter Sophie Scott explains, the Government's also flagged a greater role for private health insurers in general practice.

SOPHIE SCOTT: The future of Medical Locals has been under a cloud since before the Government came to power, but now comes the greatest indication yet that they'll face the axe.

Dr Arn Sprogis is the chairman of the peak body for Medicare Locals.

ARN SPROGIS: All Medicare Locals would do services for people who fall through the gaps - so the homeless, the disabled, the aged. So people who normally struggle who get access.

SOPHIE SCOTT: Medicare locals were put in place by the previous Labor government to run locally-designed health programs for communities across the country.

The Coalition has long argued against the $1.8 billion scheme and vowed to scrap them. During the election, the position softened and after taking office they announced a review. The Government now has that review.

Advocates of Medicare Locals are concerned the scheme will be axed.

ARN SPROGIS: It would be an enormous mistake to reduce the number of Medicare Locals and to reduce the activity that they're currently undertaking.

SOPHIE SCOTT: The ABC has learned a number of Medicare Locals chiefs have been told of the Government's plans to phase out Medicare Locals within a year. They would be replaced by larger centralised agencies.

ARN SPROGIS: People have got to realise Medicare Locals only take up about 0.3 per cent of the health care budget, and yet perform way better than that - much more productive than the amount of money they get.

SOPHIE SCOTT: Also believed to be on the Government's agenda is boosting the involvement of private health insurance at the GP level.

Late last week, Medicare local CEOs held a phone hook up to discuss their fate. Documents obtained by the ABC from the Australian Medicare Local Alliance urge each organisation to lobby for its survival.

EXCERPT FROM DOCUMENTS (voiceover): I would urge Medicare Locals to continue to engage across the political spectrum and highlight not only the good work of Medicare Locals, but what would be lost if Medicare Locals were not there.

SOPHIE SCOTT: Before the election Tony Abbott said he couldn't guarantee all Medicare Locals would stay open or retain their current form. His position changed during an election debate in August.

CATHERINE KING: That will be a breach of promise from Prime Minister Abbott and from Peter Dutton, if that's to be the case. We've had some 3,000 workers in this country - health professionals, direct workers in the health sector - over the weekend have speculation running rife where they believe they are potentially going to lose their jobs and we've heard absolutely nothing from the Government.

SOPHIE SCOTT: The Health Minister Peter Dutton was unavailable for interview. A spokesman says no final decision has been taken.